Due to the rise in availability of on-demand software solutions for supply chain management, the use of cloud-based solutions is becoming more prevalent. These new cloud technologies are enabling efficiency breakthroughs and providing managers with complete end-to-end supply chain visibility and control. The move to cloud-based software has driven a number of changes in the supply chain management industry and here we will explore 5 of them in more detail.

1. Connectivity

Cloud technology is connecting disparate systems and trading communities on a single platform. Everyone working within a business network is accessing the same data from any point, using any device. This removes the need for them to be physically located in the same premises, or having to exchange frequent emails and phone calls to get the latest information. This level of connectivity relies on a robust and accessible technology platform that manages a range of different users and various processes whilst capturing all the milestones taking place. By connecting vast supply chain networks, companies achieve real-time visibility of the entire flow of activities from the moment a product concept takes shape through to a final sale.

2. Scalability

When a business evolves, it is likely that its computer systems will need to evolve with it. Cloud technology provides a business with the ability to quickly scale up or down and seamlessly integrate with your existing software systems. So, your business is ready to go wherever you are.

3. Collaboration

By connecting all trading partners in the supply chain through single and centralised SCM software, greater collaboration becomes much easier. Geo-analytics can also be used to enable a business to monitor and plan their delivery networks. This type of information drives intelligent logistical decision-making, enabling the most appropriate transport and delivery routes. This helps ensure stock arrives in the right place at the right time.

4. Efficiency

Cloud technology promotes greater integration of different systems and platforms to share data. The accessibility of up to date information allows collaborative planning across multiple departments. Using data to identify business units that need increased support enables managers to reallocate resources accordingly. This leads to increased productivity and faster product developments, innovations and improvements, thus reducing timescales, often with the same amount of resource.

5. Cost-effectiveness

One of the biggest impacts of using cloud technology for supply chain management is on cost, as it significantly reduces the operational costs of a business. The automation of routine tasks can reduce the resource required to manage administrative, everyday jobs. This enables there to be greater focus on more important issues that arise. Cloud technology also provides cost-cutting benefits in areas such as data security, hardware costs, data analysis and reporting to name a few examples. As you can see, the effect cloud technology is having on the industry is ground-breaking and it’s facilitating performance breakthroughs throughout.